An Expat's Split Year Treatment: A Case Study
See how Split Year Treatment works in practice. We'll look at Sarah, who moved from the UK to Dubai for work part-way through the tax year, to see how she correctly separates her UK and overseas income.Sarah has a job in the UK. She is offered a new job in Dubai and moves there on 1st October, starting her new role immediately. She will be working full-time in Dubai for the next few years.
Step 1: Does Sarah qualify for Split Year Treatment?
Yes. She meets the criteria for Case 1: Starting full-time work overseas. She has moved abroad for work and will meet the conditions of the test.
Step 2: Splitting the Tax Year
Sarah's tax year is split into two parts:
- The UK Part: 6th April to 30th September.
- The Overseas Part: 1st October to 5th April.
Step 3: Calculating her UK Tax
Because she qualifies for Split Year Treatment, Sarah is only liable for UK tax on her worldwide income during the UK Part of the year.
- UK Salary (April–Sept): £30,000 — taxable in the UK.
- Dubai Salary (Oct–April): £40,000 equivalent — not taxable in the UK.
Without Split Year Treatment, Sarah would be a UK resident for the entire year and could have been liable for UK tax on her Dubai salary. The split year ensures she only pays UK tax for the period she was resident here.